A machine that cost $$300,000$ has annual depreciation expense of $$60,000$ and accumulated depreciation of $$150,000$ at December $31,20$Y$5.$ On April $1,20$Y$6,$ when the machine has a fair value of $$120,000,$ it is exchanged for a similar machine with a fair value of $$360,000$ and the proper amount of cash is paid. The exchange lacked commercial substance.